In Kenya’s fast-paced digital economy, instant cash solutions like the Hustler Fund and Fuliza have become lifelines for millions navigating daily expenses, business needs, or unexpected emergencies.
Both offer quick access to funds via mobile, as you can dial 254# for Hustler Fund or 234# for Fuliza, but they serve different purposes and come with distinct trade-offs.
As of October 2025, with rising living costs and a surge in digital lending (Fuliza disbursed over KSh 834 billion in 2024 alone), choosing the right one can mean the difference between empowerment and a debt trap. This guide breaks down the key differences, costs, and scenarios to help you decide.
Quick Overview: What Are They?
Fuliza:
A short-term overdraft service from Safaricom in partnership with NCBA and KCB. It lets you complete M-Pesa transactions even with insufficient balance, automatically advancing the shortfall.
Ideal for immediate, small-scale needs like paying a vendor or sending money when you’re short.
Hustler Fund:
A government-backed initiative under the Financial Inclusion Fund, launched in 2022 to promote financial inclusion for hustlers, small traders, and individuals.
It provides unsecured personal loans (up to KSh 50,000) aimed at productive use, like buying stock or starting a side hustle, with a mandatory 5% savings component.
Both are accessible via USSD on any Kenyan SIM (Fuliza requires Safaricom), but Hustler Fund is open to all networks after 90 days of activity, while Fuliza needs six months on Safaricom.
READ ALSO:What You Need to Know About Hustler Fund Savings
Key Differences: A Side-by-Side Comparison
To make an informed choice, weigh factors like speed, cost, limits, and repayment. Here’s a breakdown based on the latest data as of October 2025:
| Feature | Fuliza | Hustler Fund |
|---|---|---|
| Loan Type | Overdraft for M-Pesa transactions (e.g., send money, pay bills). | Unsecured personal loan disbursed directly to M-Pesa. |
| Loan Limits | KSh 0–70,000 (based on M-Pesa activity; starts low for new users). | KSh 500–50,000 (increases with good repayment history; reviewed every 4 months). |
| Interest Rate | 1% one-time access fee + daily maintenance fee (tiered): – KSh 0–500: KSh 0 (first 3 days), then KSh 3/day – KSh 501–1,000: KSh 6/day – KSh 1,001–2,500: KSh 13/day – Up to KSh 70,000: KSh 25/day (Effective ~1.08% daily or ~395% APR if unpaid for a month). | 8% per annum (pro-rated; ~0.022% daily). Rises to 9.5% after 15 days default. |
| Fees | 1% access fee per borrow + daily fees after 24 hours (waived first 3 days for <KSh 1,000). No processing fees. | No access/processing fees. 5% of loan mandatory to savings (95% disbursed; split 30% short-term/70% long-term, earns ~12% interest). |
| Repayment Period | Flexible, on-demand (auto-deducts from incoming M-Pesa funds). | 30 days (extended from 14 in 2024). |
| Penalties | Auto-deducts incoming funds; limit suspension after prolonged default. No CRB listing for short defaults. | Account freeze after 30 days; no CRB, but re-borrowing blocked until repaid. Potential M-Pesa deductions starting late 2024. |
| Eligibility | Active Safaricom M-Pesa user (6+ months); transaction history matters. Ignores CRB status. | Kenyan with active SIM (90+ days, any network); ID verification. Builds own credit score. |
| Disbursement Time | Instant for transactions. | 30 minutes–2 hours after application. |
| Purpose | Emergency top-ups for daily transactions. | Productive borrowing (e.g., business stock); includes savings for long-term security. |
| 2025 Usage Stats | KSh 2.3B daily disbursed; 95–98% repayment rate, but criticized for debt cycles. | Over KSh 72B disbursed total; 26M+ users, but high defaults (KSh 7B owed by 13M). |
Note: Rates are current as of October 2025; always check via USSD for personalised limits. APR calculations assume full term without repayment.
When to Choose Fuliza: For Ultra-Quick, Micro Emergencies
Opt for Fuliza if you need cash right now for a specific transaction like paying a matatu fare or buying groceries when your M-Pesa is at zero.
It’s seamless: no application, just attempt the send, and it covers the gap. Farmers and informal traders often prefer it for its flexibility during peak seasons, with usage jumping 8% in 2025 per CBK surveys.
Pros:
- Instant access with no waiting.
- No CRB impact for quick use.
- Free for the first 3 days on small loans (<KSh 1,000).
Cons:
- High effective costs if carried over (daily fees add up fast e.g., KSh 25/day on KSh 10,000 = KSh 750/month).
- Auto-deductions can leave you “starting at zero,” trapping users in cycles.
Best For: One-off gaps under KSh 2,500. Repay within 24–72 hours to minimise fees.
When to Choose Hustler Fund: For Affordable, Growth-Oriented Borrowing
Go for the Hustler Fund if you’re planning ahead for something bigger, like restocking a kiosk or bridging a business cash flow. It’s cheaper long-term and builds savings, as 5% of each loan goes into an interest-bearing account (up to 12% p.a. on savings). Despite defaults, it’s disbursed KSh 72 billion to 26 million users by mid-2025, aligning with Vision 2030’s inclusion goals.
Pros:
- The low 8% annual rate is far better than Fuliza’s effective APR.
- Builds credit score and savings for future loans/retirement.
- 24-hour protection from auto-deductions by other services like Fuliza.
Cons:
- Slightly slower (up to 2 hours).
- Defaults freeze access and may lead to M-Pesa collections.
- 5% upfront “fee” to savings (though it’s yours, earning interest).
Best For: Loans over KSh 1,000 for 7–30 days, especially if you can repay on time to boost limits.
Factors to Consider Before Borrowing
- Urgency vs. Cost: Fuliza wins on speed, but the Hustler Fund saves money over time. Calculate the total cost, e.g., KSh 5,000 on Fuliza for 10 days: ~KSh 130 (1% + 9 days x KSh 13). On Hustler: ~KSh 11 (8% pro-rated).
- Your Usage Pattern: High M-Pesa activity grows Fuliza limits; consistent repayments unlock Hustler Fund’s higher tiers. If you’re a repeat borrower, Hustler avoids CRB pitfalls better.
- Risk of Debt Cycle: Both can trap users with Fuliza via auto-pays and Hustler via defaults (13M owe KSh 7B). Prioritise needs over wants; aim for less than 30% of income on debt.
- Alternatives: Check M-Shwari or Tala for hybrids, or build an emergency fund via Hustler’s savings.
Final Tips: Borrow Smart, Not Desperate
- Assess Need: Is it survival (Fuliza) or growth (Hustler)?
- Track Costs: Use apps like Money Manager to simulate repayments.
- Repay Promptly: Both reward good behaviour with higher limits.
- Seek Advice: If in debt, contact BEFSA (0800 221 222) for free counselling.
In 2025, with CBK pushing digital credit reforms, these tools can empower if used wisely, but they’re no substitute for budgeting. What’s your go-to for instant cash? Share in the comments.
Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, and digital finance at Africa Digest News.
